British Airways and the trustees of the New Airways Pension Scheme have (NAPS) formally agreed the funding plan including benefit changes to tackle the £2.1 billion deficit in the scheme.The plan, which was agreed in principle with the trustees last year, includes annual company contributions of some £280 million for the next ten years and a one-off cash injection of £800 million.
It also includes benefit changes to take effect from April 1 and an additional £150 million in cash over the next three years, subject to the airline’s financial performance.
The benefit changes will deliver an immediate deficit reduction of some £400 million and a saving of some £80 million a year.
British Airways’ chief financial officer Keith Williams, said: “This brings to a close our lengthy consultation process on pensions. It provides greater stability and certainty for all 70,000 NAPS members and frees the company to move forward into an exciting phase of investment and growth.”